UK-based lifestyle app Velocity has been through one of the largest Series A funding rounds seen by a British company, the business has announced.
The company raised $12 million in a Series A round that closed late last week. An international group of angels was one driving force behind the successful fundraising.
Former Thomson-Reuters CEO and Chair of Morgan Stanley’s Technology Committee Tom Glocer was heavily involved – as was Initial Capital Partner Shukri Shammas. Chrystal Capital acted as sole book runners.
Childhood friends Zia Yusuf and Alex Macdonald founded the business in London in 2014. The idea for the app came to them after they experienced “firsthand the consumer frustrations of paying in restaurants”.
The app allows users to reserve and pay their bills all from their mobiles – earning rewards while doing so. Partners within the hospitality industry include Hix Restaurants, Gymkhana, Burger & Lobster and Cuckoo Club.
Before founding Velocity, Zia Yusef was an executive director at Goldman-Sachs. He sad he decided to leave and co-found the business to deliver a truly modern and mobile experience in “the world’s leading Michelin-starred and international prestige restaurant groups”.
“With Velocity transactions growing 20% weekly, and a third of transactions already from repeat customers, it’s clear that affluent customer’s expectations are changing,” he continued.
Angel investor Tom Glocer said he saw Velocity at the forefront of a society that is embracing mobile payments and a world that is “moving toward a cashless economy”.
“I backed Velocity because of the strong management team and Velocity’s unique combination of mobile payment, loyalty program and social network all integrated into the way top-end restaurants and other venues already work,” he continued.